Computation of compensation payable for mines and minerals

(1) The Compensation Officer shall prepare in the prescribed form and in the prescribed manner a Compensation Assessment-roll containing in respect of every intermediary in receipt of royalties on account of mines and minerals or directly working mines comprised in the estate or tenure - (a) his gross income and net income from such royalties: (b) his gross income from mines worked directly by him and the amount deemed to be his net income from royalties in respect of such mines; (c) the amount of compensation payable to him under the provisions of this Act for mines and minerals; and (d) such other particulars as may be prescribed. (2) For the purpose of clause (a) of sub-section (1), the gross income of an intermediary from royalties shall be the average annual income on account of royalties, calculated on the basis of the annual returns filed by the intermediary for the assessment of cess or income-tax during the period of twelve agricultural years preceding the agricultural year in which the date of vesting falls, or any shorter period for which such returns have been filed, and the net income from royalties shall be computed by deducting from the gross income so determined the average of the income-tax and cess paid thereon during the said period and the cost of collection at such rates as may be prescribed: Provided that any sum shown in either of the said annual returns as having been received by the intermediary by way of salami or premium shall not be taken into account calculating the gross income from royalties. (3) For the purposes of clause (b) of sub-section (1), the gross income of an intermediary from mines worked directly by him shall be the average annual gross income from such mines calculated on the same basis as that specified in subsection (2); and an amount equal to five per centum of the gross income so determined shall be deemed to be the net income from royalties which he might have derived in respect of such mines if he had leased them to another person. (4) After the net income from royalties has been computed under subsections (2) and (3), the Compensation Officer shall proceed to determine the amount of compensation to be payable to the intermediary in accordance with the rates prescribed under sub-section (1) of Section 24. (a) Where the amount of compensation can be fixed by agreement it shall be determined in accordance with such agreement; (b) Where no such agreement is reached within the prescribed period, the Compensation Officer shall refer the question of the determination of the amount of compensation of a Mines Tribunal appointed under Section 12 (c) at the commencement of the proceeding before the Tribunal, the State Government and the intermediary shall state what in their respective opinion is a fair amount of compensation; (d) the Tribunal in giving its award shall have regard to the provisions of subsection (2) and (3), and determine the amount of compensation to be payable to the intermediary at such rate which shall be not less than three and not more then twenty times of the net income from royalties as may appear to the tribunal to be fair and equitable; (e) every award made by the Tribunal under this sub-section shall be final and shall be communicated to the Compensation Officer who made the reference and thereupon he shall proceed to complete the compensation assessment-roll accordingly.